One 97 Communications Ltd, the parent company of Paytm, on Friday informed that the company and its associate entity, Paytm Payments Bank Limited (PPBL), have unveiled measures aimed at enhancing the independent operations of PPBL.
To reduce dependencies, both Paytm and PPBL have mutually decided to terminate various inter-company agreements with Paytm and its group entities. Additionally, shareholders of PPBL have reached an agreement to streamline the Shareholders Agreement (SHA), thereby reinforcing PPBL’s governance independently of its shareholders. The decision to terminate agreements and amend the SHA was officially approved by the Board of OCL on March 1, 2024.
Paytm had previously announced its intentions to forge new partnerships with other banks and implement measures to ensure seamless services for its customers and merchants, as indicated in its communication to stock exchanges on Feb 1, 2024, where the potential financial impact was also highlighted.
Furthermore, it has been reiterated that all services provided by One 97 Communications Limited, including the Paytm app, Paytm QR, Paytm soundbox, and Paytm Card machines, will continue to operate without interruption. Paytm remains steadfast in its commitment to maintaining the highest standards of market-leading innovation and technology-enabled solutions for its vast customer base.
